Joel Van Arsdale & Alessandro Mighetto • 19 May, 2023
Infographic: Paypal Q1 2023 and FY 2022 Performance Assessment
Image and Logo Credits: FreePik, PayPal
General Commentary & Highlights
PayPal lost ~$155 B in market cap with ~70% decline in share price since Jan ’22
Share price hit a 6-year low on 12 May this year
Pace of M&A clearly slowing with potential for divestitures (i.e., Xoom sale being explored)
GAAP EPS recorded a net loss of ~$0.45 related to PayPal’s strategic investments in Q2 ’22
Returned $4.1B through share repurchases in the last 12 months, FY ‘23 expected to reach ~$4B
International gross revenues were impacted by FX fluctuations in FY ’22. Revenue loss in the EU from Q2 ’21 to Q3 ’22. Any single country, except for US, accounts for less than 10% of Revenue
VAS revenue decreased by 4% from FY ’17 to FY ’20, but has since rebounded well with a 23% CAGR from FY ’20 and growth of 39% in Q1 ‘23, driven by interest revenue
Opex as a % of gross profit was flat from 2017 to 2022, which means the business achieved no scale efficiencies across those five years (influenced by declining gross margin). FY ’22 guidance incorporated $900M cost savings with the annualized benefit of ~$1.3B in FY ’23
Please do not hesitate to contact Joel Van Arsdale at Joel@FlagshipAP.comwith comments or questions.
Infographic: Paypal Q1 2023 and FY 2022 Performance Assessment
Image and Logo Credits: FreePik, PayPal
General Commentary & Highlights
PayPal lost ~$155 B in market cap with ~70% decline in share price since Jan ’22
Share price hit a 6-year low on 12 May this year
Pace of M&A clearly slowing with potential for divestitures (i.e., Xoom sale being explored)
GAAP EPS recorded a net loss of ~$0.45 related to PayPal’s strategic investments in Q2 ’22
Returned $4.1B through share repurchases in the last 12 months, FY ‘23 expected to reach ~$4B
International gross revenues were impacted by FX fluctuations in FY ’22. Revenue loss in the EU from Q2 ’21 to Q3 ’22. Any single country, except for US, accounts for less than 10% of Revenue
VAS revenue decreased by 4% from FY ’17 to FY ’20, but has since rebounded well with a 23% CAGR from FY ’20 and growth of 39% in Q1 ‘23, driven by interest revenue
Opex as a % of gross profit was flat from 2017 to 2022, which means the business achieved no scale efficiencies across those five years (influenced by declining gross margin). FY ’22 guidance incorporated $900M cost savings with the annualized benefit of ~$1.3B in FY ’23
Please do not hesitate to contact Joel Van Arsdale at Joel@FlagshipAP.comwith comments or questions.
